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News Report

Bitmart Hack Victims Demand Answers

2 mins
Updated by Levy Prata

In Brief

  • Bitmart’s customers who lost safemoon tokens are demanding updates on the promised reimbursement.
  • One customer is reportedly on the verge of suicide for losing money locked in safemoon tokens during the hack.
  • Some users are considering a class-action lawsuit against the exchange.
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Some Bitmart customers are crying foul, after the company fails to respond to requests for updates following the December hack that saw $200M worth of assets depart from two of Bitmart’s hot wallets.

Bitmart’s customers are speaking up. After the Dec. 2021 hack, victims are still awaiting further communication from the exchange regarding reimbursement of lost funds. Bitmart wrote in an official statement that they would reimburse victims of the attack. Communication with the CEO via email has resulted in emails bouncing.

One individual from Toronto, an Iranian refugee, is on the verge of suicide. He invested $53K, $40K of which came from a loan, in safemoon tokens contained in a Bitmart wallet. He is a tow-truck driver who wanted to use cryptocurrencies to make a future in Canada. Another individual invested his own money plus $30K from his mother and mother-in-law. Not only did he lose money, but he is responsible for the funds of two other investors.

A Bitmart customer from Kansas has contacted 6800 safemoon token holders who are considering a class-action lawsuit against Bitmart. Safemoon tokens constituted a large proportion of more than 45 coins stolen in the hack. Some Bitmart users have reported reimbursements for the saitama tokens. But safemoon holders have been kept guessing. A group colloquially known as the Safemoon Army is pursuing a Twitter campaign to shame Bitmart into paying back victims.

How will Bitmart do this?

Bitmart supports token exchanges, but one user said they would lose money if they liquidate safemoon tokens to USDT, a stablecoin that tracks the U.S. Dollar. This is because he would incur a 10% fee for the liquidation, and safemoon tokens would be liquidated at a third of the price that the tokens trade at today.

In a Twitter Spaces discussion, the exchange itself was brought under scrutiny. Bitmart raised $13.7M in a Series B funding round, resulting in a $300M valuation, leading some to wonder how it would reimburse $200M in lost assets. Others have expressed concern that Bitmart has only stopped withdrawals since the incident, instead of stopping trading on the affected and non-collateralized tokens.

Nothing to worry about – Safemoon executive

A senior safemoon executive has 15% of his safemoon tokens on Bitmart and believes that Bitmart will come out on the right side of this saga. “We’ve come such a long way now that I believe that BitMart will keep their promise and do the right thing…Especially with the safemoon army, we have such a great support for what we’re trying to achieve that it wouldn’t die down. It won’t only add more fuel to the fire,” he said.

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